2021 Gold Exploration Plans
ORIGINAL: Velocity Announces 2021 Gold Exploration Program
Plans up to 50,000 metres of drilling
2021-02-03 07:01 ET - News Release
Vancouver, British Columbia--(Newsfile Corp. - February 3, 2021) - Velocity Minerals Ltd. (TSXV: VLC) ("Velocity" or the "Company") announces an expanded 2021 exploration drill program of up to 50,000m at its projects in Bulgaria following up on positive 2020 results and extensive targeting in preparation for 2021.
Highlights of 2020 include:
- Positive Rozino prefeasibility study completed returning an after-tax IRR of 27.4%.
- 22,500m of drilling completed in 2020
- Total of $14.7 million raised, including a $8.9 million premium financing in Q4
- Dundee Precious Metals invested to become a 9.99% shareholder with a right to nominate one Board member on future increase to 15% ownership
- Artemis Gold maintains 22% issued and outstanding shareholding and Steven Dean, Artemis' founder, founder, Chairman and CEO, joined Velocity Board of Directors
- Entered into option agreement to acquire 100% of 105 km2 Iglika gold project
"2020 was our most productive year since the Company began its first exploration program at the Rozino gold project in 2017," stated Keith Henderson, President and CEO. "In addition to completing a prefeasibility study at Rozino, drilling more than 22,500m and discovering new zones of gold mineralization, the Company attracted almost $15 million of investment. Artemis Gold maintained its 22% issued and outstanding position while Dundee Precious Metals became a new corporate investor holding 9.99%."
The Company is actively drilling at Rozino, Obichnik and Makedontsi. From early February, 5 rigs will be operating across various projects.
Rozino Project
In 2020, approximately 9,400m of exploration drilling was completed within 4km of Rozino resulting in the discovery of two promising zones of mineralization at Rozino South and Kazak (see news releases July 21, 2020 and September 17, 2020, respectively). Additional exploration drilling of these targets, and additional targets in the area, is in progress. Any resource additions near Rozino have the potential to utilize common infrastructure planned to be built at Rozino.
Obichinik Project
Near surface potential was tested in 2020 by completing approximately 8,800m of exploration drilling with notable exploration success at the Durusu gold target and discovery of new mineralized zones at Sivri Tepe and Premka targets (see news releases June 2, 2020 and November 3, 2020, respectively). Additional exploration drilling is currently in progress.
Makedontsi Project
During 2020, a program of integrated exploration including geochemical sampling and geophysics was undertaken to assess potential for 'blind' mineralization amenable to open pit mining under a thin post mineralization limestone cover sequence. Exploration drilling for 2021 has begun.
Iglika Project
During 2020 the Company entered into an option to acquire a 100% interest in the 105 km2 Iglika gold-copper property. The project is located in the westernmost portion of the prolific Tethyan belt that transects Bulgaria and hosts a number of epithermal gold and porphyry copper-gold mineral deposits and operating mines. Velocity is focused on targets with potential for discovery of gold mineralization.
In 2020, the company completed extensive rock and soil sampling as well as ground magnetic and induced polarization (IP) geophysical surveys with results and interpretation pending. Additional surface exploration is planned with exploration drilling expected to begin in Q2.
Appointment of Corporate Secretary
The Company announces that it has appointed Arie Page as Corporate Secretary. Ms. Page obtained her law degree in 2004 and was called to the Bar of British Columbia in 2005. She has been working with public resource companies in the minerals sector for over 14 years and currently also serves as corporate secretary to several issuers. Marla Ritchie has resigned as corporate Secretary and the Company wishes to thank Ms. Ritchie for her work over the past three years.
Qualified Person
The technical content of this release has been approved for disclosure by Stuart A. Mills, BSc, MSc, CGeol, a Qualified Person as defined by NI 43-101 and the Company's Vice President Exploration. Mr. Mills is not independent of the Company.
About Velocity Minerals Ltd.